City Pair Program

TMC Forum

April 10, 2013

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Agenda

• Changes in FY14• FY14 Market Information• FY14 Timeline• 48 Hour Auto Cancellation• Use of Commercial Fares• CPP Evolution

Changes in FY14

• Fuel Surcharge• Baggage Fee as an Evaluation Factor• International reservations subject to auto

cancellation• Composite fare weighting for international

markets• Eastbound flight crossing three time zones

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FY14 Market InformationItem FY13 FY14 ChangeMarkets Solicited 7,005 7,012 7Total Domestic Markets 5,561 5,402 -159Total International Markets 1,444 1,610 166Group 1 Markets 3,746 3,872 126Group 2 Markets 3,259 3,140 -119Passenger Count 7,708,459 7,503,347 -205,112

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FY14 TimelineAction Date

Group 1 Proposals Submitted End of March 2013

Group 2 Proposals Due Mid-April

Special Board Convenes Week of April 15

Negotiations May - June

Notifications of Award Mid - late July

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48 Hour Auto Cancellation

• GSA distributed Airline profile document– Usefulness of document

• Ease of Automation• Concerns with auto cancellation process

Use of Commercial Fares• CPP and Commercial Fares

– Agencies may authorize the use of a non-CPP fare– FAS is working with OGP and OMB for additional guidance

• Support of CPP Awarded Airlines– When lowest price, in a market, is equal among all airlines, the airline

awarded the city pair contract should receive the market share of the business

– Essential to ensure airlines will continue to provide discounted CPP fares

– CPP Contract and FTR/JFTR exceptions are aligned

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Use of Commercial Fares: Agency Considerations

• Managing Unused, Non-refundable Tickets– Must be managed to minimize waste of unused tickets due to expiration– Traveler Education– ETS configurations for commercial fares

• Reimbursing Changed Itineraries in Commercial Fare Model– Business processes must be established to manage cost of changing itineraries

• TMC Reporting – TMCs to provide reporting on unused, unexpired ticket credits that need to be

managed by Agency and used prior to expiration

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Questions